India's digital payments giant, PhonePe, a Walmart-backed fintech powerhouse, is reportedly gearing up for a significant entry into the public markets. The company has filed its draft papers with the capital markets regulator for an Initial Public Offering (IPO) via the confidential route, with reports suggesting a potential IPO size of ₹12,000 crore (approximately $1.35 billion). This move marks a major milestone for one of India's most widely used UPI-powered platforms, signalling its ambition to raise capital and further solidify its position in the rapidly expanding digital economy.
The timing of PhonePe’s IPO filing comes alongside encouraging improvements in its financial health. The company recently reported a narrowing of its net loss to ₹1,720 crore in FY25, a notable improvement from ₹1,996 crore in the previous fiscal year. Simultaneously, its revenue from operations surged by an impressive 40% to ₹7,115 crore over the same period, reflecting robust growth in its business activities. With over 600 million registered users, supporting 40 million merchants, and processing more than 310 million online transactions daily, PhonePe's scale and operational efficiency underscore its dominance in the digital payments arena.
Adding to its strategic readiness, PhonePe recently secured final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This crucial license empowers the company to significantly expand its reach, particularly targeting small and medium-sized businesses (SMEs) across the country. By focusing on both established enterprises and underserved segments, PhonePe aims to accelerate financial inclusion and deepen digital penetration. The confidential pre-filing route offers PhonePe the flexibility to refine its IPO strategy and details before making them public, reflecting a cautious yet determined approach towards its market debut.
